Professional sports leagues have rarely filed for bankruptcy and shut down operations.

Examples of league failures and bankruptcies include the women’s professional basketball league, American Basketball League, which was founded in 1995, and suspended league play in December 1998 after filing for Chapter 11 bankruptcy protection and seeking an orderly liquidation of the league, CBS reported at the time.

Alliance of American Football didn’t complete a season

A more recent example of a professional sports league filing bankruptcy and liquidating is the Alliance of American Football, which filed for Chapter 7 bankruptcy liquidation in April 2019, WXIA-TV 11 reported at the time.

The Alliance of American Football was in such bad financial shape that it didn’t even complete its inaugural football season.

The debtor had $48 million in liabilities, about $11 million in assets, and only $536,000 cash on hand when it filed its bankruptcy petition.

Alliance of American Football bankruptcy stats

• Assets, $11 million
• Liabilities, $48 million
• Cash on hand, $536,000

Another sports league facing financial distress has also filed for Chapter 11 bankruptcy but has no plans to liquidate. Instead, it hopes to secure financing during bankruptcy, reorganize its business, and continue operating.

Four-time Olympic gold medalist sprinter Michael Johnson founded professional league Grand Slam Track, which filed for bankruptcy.

Grand Slam Track files for Chapter 11 bankruptcy

Four-time Olympic gold medalist Michael Johnson’s professional track league Grand Slam Track has filed for Chapter 11 bankruptcy to reorganize its business.

GST Inc., the pro league’s parent company, filed its petition in the U.S. Bankruptcy Court for the District of Delaware on Dec. 11, listing less than $50,000 in assets and $10 million to $50 million in liabilities.

The Playa Del Rey, Calif.-based professional track league filed its petition to “stabilize its finances, implement a more efficient cost and operating model, and position GST for long-term success,” the league said in a statement.

“Grand Slam Track was founded to create a professional platform that reflects the talent and dedication of this sport’s athletes,” Johnson, who founded the league, said in a statement.

“While GST has faced significant challenges that have caused frustrations for many – myself included – I refuse to give up on the mission of Grand Slam Track and the future we are building together,” Johnson said.

Grand Slam Track’s financing deal collapsed

GST consulted restructuring advisers to address liquidity issues and negotiate payment arrangements on debt earlier this year, after committed financing fell through, the statement said.

After reviewing its options, the company determined that filing for Chapter 11 protection was its best path forward.

Grand Slam Track seeks debtor-in-possession financing

GST is finalizing a debtor-in-possession financing proposal as part of its Chapter 11 reorganization process.

“These steps will allow GST to address its outstanding liabilities while continuing constructive discussions with interested investors,” Chief Restructuring Officer Nicholas Rubin said in a statement.

“Ultimately, the goal of the reorganization is to create a more efficient operating structure, enhance athlete and partner relationships, and provide the League with a platform for future success,” Rubin said.

Johnson launched Grand Slam Track professional track league in June 2024, with plans for competition to begin in April 2025.

“I am delighted to finally unveil Grand Slam Track to the millions of track fans around the world,” Johnson said in a statement when he launched the league.

“We are excited to launch this new platform for the planet’s greatest racers in this sport we all love,” Johnson said.

More bankruptcy:

• 64-year-old furniture store franchisee files Chapter 11 bankruptcy
• Golf legend’s iconic brand files for Chapter 11 bankruptcy
• Major health services provider files for Chapter 11 bankruptcy

Johnson won gold medals in the 4×400 meters relay at the 1992 Barcelona Olympics for the U.S. team, in the 200 meters and 400 meters sprints at the 1996 Atlanta Olympics, and in the 400 meters sprint at the 2000 Sydney Olympics.

Johnson in 2008 returned a fifth gold medal that he won in Sydney with the 4×400 meter relay team after a relay team member admitted to doping.

Michael Johnson’s gold medals:

• 4×400 meters relay, 1992 Barcelona Olympics
• 200 meters sprint, 1996 Atlanta Olympics
• 400 meters sprint, 1996 Atlanta Olympics
• 400 meters sprint, 2000 Sydney Olympics

Grand Slam Track Chapter 11 bankruptcy basic facts

• Filed Chapter 11 in Delaware after its troubled debut season, Reuters reported.
• Assets under $50K; liabilities $10 to $50 million, 200–999 creditors, according to Running Magazine CA.
• Owes athletes and vendors an estimated $19 million, reported Running Magazine CA.
• Sought deals to pay vendors 50% to avoid filing before choosing Chapter 11, according to Front Office Sports.
• Canceled final 2025 event. Struggled with attendance and funding gaps.
• Plans court-supervised reorganization and DIP financing, according to a press release.
• Management says this is a reset, not a shutdown, Reuters reported.

Related: 63-year-old regional hospital system files Chapter 11 bankruptcy